Glossary

Gwei

Plain-language definition Crypto glossary

Key takeaways

Gwei is a tiny unit of ether, Ethereum's native currency, equal to one-billionth of an ether, and it is the unit gas fees are usually quoted in.
Because a full ether is large relative to the cost of a single transaction, fees are expressed in gwei to keep the numbers readable, with the total fee being the gas price in gwei multiplied by the gas consumed.
Gwei is the practical unit users watch to judge how expensive the network is at any moment, since gas prices in gwei rise when the network is busy.

Definition

Gwei is a tiny unit of ether, Ethereum’s native currency. One gwei is one-billionth of an ether, and it is the unit gas fees are usually quoted in.

How it works

Because a full ether is a large amount relative to the cost of a single transaction, fees are expressed in gwei to keep the numbers readable. When you send an Ethereum transaction, you pay a gas price measured in gwei per unit of gas; the total fee is that price multiplied by the gas the transaction consumes.

Why it matters

Gwei is the practical unit users watch to judge how expensive the network is at any moment. When the network is busy, gas prices in gwei rise as users compete to have their transactions included sooner.

Example

A wallet might estimate a transaction’s gas price at 20 gwei when the network is quiet and far higher when it is congested.

FAQ

Frequently asked questions

How much is one gwei?

One gwei is one-billionth of an ether. Because a full ether is large relative to a single transaction's cost, gas fees are quoted in gwei to keep the numbers easy to read.

How does gwei relate to my transaction fee?

When you send an Ethereum transaction, you pay a gas price measured in gwei per unit of gas. Your total fee is that gas price multiplied by the amount of gas the transaction consumes.

Why do people watch the gwei price?

The gas price in gwei is a quick gauge of how expensive the network is at any given moment. When the network is busy, gwei prices rise as users compete to have their transactions included sooner.